Mejn speaks on 2022/23 Budget

 A budget analysis by the Malawi Economic Justice Network (Mejn) has found glaring misalignment of the 2022/23 National Budget and the Malawi 2063 Implementation Plan 1 (MIP-1) with the MIP-1 estimates being lower than budgetary estimates.

The analysis, done with support from the IM Swedish Partner, for instance, found that there are issues of programmes costing mismatch between allocation in the budget and what was planned in the MIP-1.

For example, the total planned allocation in 2022/23 financial year in MIP-1 for pillars and enablers was pegged at K1.48 trillion, but the budget allocation is pegged at K2.84 trillion, which is 192 percent higher than what was projected in the MIP-1 budget.

Consultant economist Christopher Mbukwa, who undertook the analysis on behalf of Mejn, said there is a possibility of underestimating some cost items in the MIP-1; hence, contributing to the variations.

He said: “The estimated allocations to the individual pillars and enablers in the 2022/23 Budget are inconsistent with the planned allocations in MIP-1.

“Therefore, government should review the cost estimates in the MIP-1, considering the huge variances compared with the actual allocations in the 2022-23 budget’s robust yardstick.”

The study recommends the need to review the costing of the flagship projects to reflect the current prices and inflation levels because cost estimates in the MIP-1 were lower than the actual budgetary estimates.

Mejn board chairperson Martin Mtumbuka said they undertook the study to unearth the mismatches in the budget and the long-term development blueprint the Malawi 2063 to trigger a discussion for duty-bearers to take action to ensure attainment of the development goals.

Budget and Finance Committee of Parliament chairperson Gladys Ganda said the outcome of the analysis is a clear manifestation of the country having rich development policies but lacking implementation